720 E 3rd St · Fairmont, MN 56031

$117,000

2 bd · 2.0 ba · 1,204 sqft · SingleFamily public records · 20 Days on market

Built 1920 6,577 sqft lot

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Why this score? — see what drove the C- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +20.4/30.0
• ARV discount +7.5/15.0
• DSCR +6.5/10.0
• 1% rule +4.7/10.0
• Schools +4.1/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

This 2 BR, 2 bath home is priced to sell. The front entry opens into a spacious 3 season porch with natural lighting. The living/dining room provides a great space for entertaining or relaxing. The main floor also features a cozy kitchen, 2 bedrooms and a full bath. The upper level boasts a large 3rd bedroom with additional sitting area. The basement offers a laundry, 3/4 bath, storage room and plenty of open space.

Key facts

• Flexible bonus space
• Usable basement
• Updated flooring

Tags

• UPDATED FLOORING
• USABLE BASEMENT
• FLEXIBLE BONUS SPACE
• DETACHED GARAGE

Property features AI

Finance

• Financial info: Annual taxes listed (see broker) $952 (2025)

Exterior

• Parking: 1-car garage
• Utilities: City water; City sewer; Natural gas
• Home design: Residential property
• Construction: Block foundation; Foundation area 1,088; Above-grade finished area 1,204; Below-grade area 1,088; Total building area 2,292
• Exterior features: Stucco exterior; Lot dimensions 54 x 122; 0.151-acre lot

Interior

• Bedrooms: 2 bedrooms
• Bathrooms: 1 full bath; 1 half bath
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Block foundation basement; One and one-half levels

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath single-family listed at $117k.

Deal economics

• At list price, monthly cash flow is $153 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $113k (3.2% below list).
• Recommended offer: $113k (3.2% below list) — sets the bar for 1% rule.
• Cap rate 7.9% vs local median 3.4% in Fairmont — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 68/100 on livability (#407 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, employment D+, amenities F.
• Fairmont Area School District (town): math 45% / reading 51% proficiency, ranked #148 of 301 in MN (top 49%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 94 active listings in the ZIP; 19 units permitted in Martin County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $809 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Martin County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 20 days — a 2% lower offer ($115k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 7y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $74k; list at $117k implies a 58% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $113,224 (3.2% below list)

Questions for the listing agent

1. Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
4. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
5. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 0.97% ✗
• Cap rate: 7.86%
• Cash-on-cash: 5.60%
• DSCR: 1.25
• GRM: 8.6

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -7.7%
• Equity multiple: 0.72×
• Total profit: $-9,250
• Equity at exit: $17,445

10-year hold

• IRR: 1.9%
• Equity multiple: 1.13×
• Total profit: $4,382
• Equity at exit: $10,116

Cash invested: $32,760 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 46 Balanced
• State Minnesota: 46 Balanced · D+2
• County: — inherits STATE
• City: — inherits STATE

2024 reforms strengthened tenant protections; ramsey/hennepin courts paced moderate to slow.

Methodology + full state rankings →

ZIP-level market 56031

• Active inventory: 94
• Price-to-rent: 8.6×

Monthly cashflow live

• Estimated rent: $1,132 medium
• Mortgage (P&I): −$614
• Tax from tax record: −$79 /mo · $952/yr
• Insurance: −$49
• HOA: −$0
• Vacancy / Maint / Mgmt: −$238
• Net cashflow: $153

Break-even live

Break-even rent $939

Max offer price $117,000

Occupancy floor 82%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $29,250
• Closing costs: $3,510
• Reserves months: —
• Total cash needed: —

Listing history 22 events

1. 2026-06-18
   days on market $117,000 Active 20 DOM
2. 2026-06-17
   days on market $117,000 Active 19 DOM
3. 2026-06-16
   days on market $117,000 Active 18 DOM
4. 2026-06-15
   days on market $117,000 Active 17 DOM
5. 2026-06-13
   days on market $117,000 Active 15 DOM
6. 2026-06-12
   days on market $117,000 Active 14 DOM
7. 2026-06-09
   days on market $117,000 Active 11 DOM
8. 2026-06-08
   days on market $117,000 Active 10 DOM
9. 2026-06-07
   days on market $117,000 Active 9 DOM
10. 2026-06-05
    days on market $117,000 Active 7 DOM
11. 2026-06-04
    days on market $117,000 Active 5 DOM
12. 2026-06-02
    days on market $117,000 Active 4 DOM
13. 2026-06-01
    days on market $117,000 Active 3 DOM
14. 2026-05-31
    days on market $117,000 Active 2 DOM
15. 2026-05-28
    listed $117,000 Active
16. 2019-07-26
    soldstatus $74,000 Sold 423-char remark

    Show marketing remark (605 chars)

    This 2BR 2 bath home is priced to sell. The front entry opens into a spacious 3 season room with natural lighting. The 3 season room leads directly into living/dining room which provides a great space for entertaining or just relaxing. The main floor also features 2 bedrooms and a full bath. A large 3rd bedroom can be found on the upper level with an additional sitting area. The cozy kitchen includes: stove, refrigerator, microwave and a dishwasher and space for a small table and direct access to the backyard. The basement features a laundry area, a 3/4 bath, storage room and plenty of open space.

17. 2019-07-26
    soldstatus $74,000 605-char remark

    Show marketing remark (605 chars)

    This 2BR 2 bath home is priced to sell. The front entry opens into a spacious 3 season room with natural lighting. The 3 season room leads directly into living/dining room which provides a great space for entertaining or just relaxing. The main floor also features 2 bedrooms and a full bath. A large 3rd bedroom can be found on the upper level with an additional sitting area. The cozy kitchen includes: stove, refrigerator, microwave and a dishwasher and space for a small table and direct access to the backyard. The basement features a laundry area, a 3/4 bath, storage room and plenty of open space.

18. 2019-07-26
    soldstatus $74,000

    Show marketing remark (605 chars)

    This 2BR 2 bath home is priced to sell. The front entry opens into a spacious 3 season room with natural lighting. The 3 season room leads directly into living/dining room which provides a great space for entertaining or just relaxing. The main floor also features 2 bedrooms and a full bath. A large 3rd bedroom can be found on the upper level with an additional sitting area. The cozy kitchen includes: stove, refrigerator, microwave and a dishwasher and space for a small table and direct access to the backyard. The basement features a laundry area, a 3/4 bath, storage room and plenty of open space.

19. 2019-06-24
    status Pending 423-char remark

    Show marketing remark (423 chars)

    This 2 BR, 2 bath home is priced to sell. The front entry opens into a spacious 3 season porch with natural lighting. The living/dining room provides a great space for entertaining or relaxing. The main floor also features a cozy kitchen, 2 bedrooms and a full bath. The upper level boasts a large 3rd bedroom with additional sitting area. The basement offers a laundry, 3/4 bath, storage room and plenty of open space.

20. 2019-06-24
    historical Contingent - Other 423-char remark

    Show marketing remark (423 chars)

    This 2 BR, 2 bath home is priced to sell. The front entry opens into a spacious 3 season porch with natural lighting. The living/dining room provides a great space for entertaining or relaxing. The main floor also features a cozy kitchen, 2 bedrooms and a full bath. The upper level boasts a large 3rd bedroom with additional sitting area. The basement offers a laundry, 3/4 bath, storage room and plenty of open space.

21. 2019-04-22
    listed $72,500 Active 423-char remark

    Show marketing remark (605 chars)

    This 2BR 2 bath home is priced to sell. The front entry opens into a spacious 3 season room with natural lighting. The 3 season room leads directly into living/dining room which provides a great space for entertaining or just relaxing. The main floor also features 2 bedrooms and a full bath. A large 3rd bedroom can be found on the upper level with an additional sitting area. The cozy kitchen includes: stove, refrigerator, microwave and a dishwasher and space for a small table and direct access to the backyard. The basement features a laundry area, a 3/4 bath, storage room and plenty of open space.

22. 2019-04-22
    listed $72,500 605-char remark

    Show marketing remark (605 chars)

    This 2BR 2 bath home is priced to sell. The front entry opens into a spacious 3 season room with natural lighting. The 3 season room leads directly into living/dining room which provides a great space for entertaining or just relaxing. The main floor also features 2 bedrooms and a full bath. A large 3rd bedroom can be found on the upper level with an additional sitting area. The cozy kitchen includes: stove, refrigerator, microwave and a dishwasher and space for a small table and direct access to the backyard. The basement features a laundry area, a 3/4 bath, storage room and plenty of open space.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast MN · Partial reset (capped growth)

• Current annual tax: $952 · $79/mo
• Projected year-2 tax: $1,131 · $94/mo
• Expected delta: +$179/yr (+$15/mo · 18.8%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 6/10 Major FEMA zone X · 70% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥98°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 0 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,587
• − Mortgage interest: −$6,554
• − Property taxes: −$952
• − Insurance: −$585
• − Repairs & maintenance: −$1,087
• − Management: −$1,087
• − Depreciation: −$3,404
• Taxable loss: −$81
• Est. tax savings @ 24.0%: +$20
• After-tax cash flow: $1,853/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Fairmont Area School District
• NCES district ID: 2700124
• Math proficiency: 45% ▼ -13.00%
• Reading proficiency: 51% ▼ -7.00%
• Median HH income: $46,280
• Composite: 40.76/100
• National rank: #3648
• State rank: #148 of 301 in MN

Livability — Fairmont

• Score: 68/100
• State rank: #407
• US rank: #9480

Category grades

Amenities F Commute F Cost of living A+ Crime C+ Employment D+ Housing A+ Health & safety C- User ratings D+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Fairmont, MN
• City population: 11,800
• Population (ZIP): 11,800

Population outlook (Martin County) Hauer SSP2

• Today (2025): 18,583 people
• By 2030: 17,814 · -4.1%
• By 2040: 16,312 · -12.2%
• By 2050: 15,021 · -19.2%
• By 2075: 13,025 · -29.9%
• By 2100: 11,311 · -39.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (87%)
• Race & ethnicity: White 87% Hispanic / Latino 8% Two or more races 3%
• Hispanic origin (detail): Mexican 7%
• Common ancestry: Portuguese 11% Romanian 6% Italian 2%
• Foreign-born: 3% · Canada, China
• Languages at home: 93% English-only · Spanish 5%

Political lean MEDSL · Martin

• 2024 margin: Solid R (+39.7) · D 29.5% · R 69.1% · Other 1.4%
• 2008→2024 swing: -24.4pp toward R · 2008: -15.2pp · 2024: -39.7pp
• All cycles: 2024: R+39.7 2020: R+37.9 2016: R+41.4 2012: R+23.8 2008: R+15.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -143.34%
• Current HPI: 191.514
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.41%
• F500 in state: 34

Industry mix (Fortune 500 HQ in MN)

Industry	F500 HQs	Revenue
▸Healthcare	2	$407B
▸Retail	2	$150B
▸Consumer Goods	2	$32B
▸Industrial Machinery	2	$6B
▸Agriculture	1	$40B
▸Healthcare / Medical Devices	1	$32B

Price history

+61.4% since first listed

8 events — show timeline

• 2026-05-28 Listed $117,000 NORTHSTARMLS as Distributed by MLS Grid
• 2019-07-26 Sold (Public Records) $74,000 Public Records
• 2019-07-26 Sold (MLS) $74,000 RASM
• 2019-07-26 Sold (MLS) $74,000 NORTHSTARMLS as Distributed by MLS Grid
• 2019-06-24 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2019-06-24 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2019-04-22 Listed $72,500 RASM
• 2019-04-22 Listed $72,500 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+6.4%/yr

Latest (2025): $952 · +54.0% YoY. Source: county tax records.